Productivity Versus Alignment

🌈 Abstract

The article discusses the trade-off between productivity and alignment in organizations, particularly in the context of Steve Jobs' approach to facilitating serendipitous interactions among Pixar employees. It explores how the exponential growth of communication channels as the number of stakeholders increases can negatively impact productivity and innovation.

🙋 Q&A

[01] The trade-off between productivity and alignment

1. What is the key insight about the relationship between productivity and alignment?

• As the number of stakeholders and communication channels increases, there is a trade-off between productivity (the ability to execute goals quickly) and alignment (the level of coordination and consensus among teams).
• Increasing the number of communication channels decreases everyone's productivity and discourages innovation, as there is too much organizational overhead to allow things to move quickly or for new ideas to get off the ground.
• However, reducing communication channels too much can also lead to problems, as it prevents the dissemination of information and incorporation of stakeholder inputs.

2. How does the author suggest companies should approach this trade-off?

• The author argues that companies should actively choose their position on the productivity-alignment curve, rather than being passive and letting randomness or fate govern where they land.
• There is no single "right answer", but being deliberate about the balance between productivity and alignment is important.

3. What example does the author provide to illustrate this trade-off?

• The author cites the example of Apple, which is known for its internal alignment among teams, allowing it to deliver integrated user experiences, but at the cost of the time and effort required to reach that level of consensus.

[02] Implications for startups

1. How does the author's perspective on productivity vs. alignment apply to early-stage startups?

• The author notes that in his own startup days, the team explicitly chose to prioritize quick iteration over alignment, as misalignment was a weakness they had deliberately chosen given the importance of rapid iteration for an early-stage startup.
• The author suggests that for early-stage startups, it is critical to iterate quickly due to the likelihood of errors in their initial convictions.

2. What advice does the author provide for companies when deciding to hold or cancel meetings between stakeholders?

• The author states that when a company chooses to hold a meeting between stakeholders, it should be sure it knows why. And when a company chooses to cancel a meeting between stakeholders, it should also be sure it knows why.
• This reflects the need to be deliberate in managing the productivity-alignment trade-off.